FINANCE

Tax breaks set to cost €1.85 bln

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The government’s interventions in the taxation of individuals and corporations, submitted to Parliament on Wednesday, provide for tax cuts of 1.85 billion euros for 2021 and 2022; some €905 million of that will concern this year’s budget and the rest that of 2022.

The clauses tabled provide for a reduction in the corporate income tax deposit from 100% to 55% for freelance professionals (at a cost of €236.7 million) and to 80% for corporations, which this year will only pay 70% up-front (€669 million). However, local banks and foreign credit institutions’ branches in Greece will continue to pay a deposit of 100%.

The standard corporate income tax rate is reduced from 24% to 22% (costing next year’s budget €183 million), while the suspension of the solidarity levy is extended to the 2022 incomes of private sector salary workers (costing €767 million).

Furthermore, in a bid to get the general government to pay up its dues, 60% of the cash granted to local authorities from the state budget for the payment of their own expired arrears to various state entities will be withheld.